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13.17 Lon Min has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. He has put together the following

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13.17 Lon Min has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. He has put together the following demand cost data: REGULAR QUARTER FORECAST (UNITS) TIME OVERTIME SUBCONTRACT 1 500 400 80 1 00 2 750 400 80 100 3 900 800 160 1 00 4 450 400 80 1 00 Initial inventory = 250 units Regular time cost = $1 .OO/unit Overtime cost = $1 .50/unit Subcontracting cost = $2.00/unit Carrying cost = $.5/unit/quarter Backorder cost = $0.50/unit/quarter a) Find the optimal plan using the transportation method. b) What is the cost of the plan? c) Does any regular time capacity go unused? If so, how much in which periods? (1) What is the extent of back ordering in units and dollars

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